MACERICH CO - FORM 8-K - EX-99.2 - February 6, 2017

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Exhibit 99.2

 

 

LOGO

Supplemental Financial Information

For the three and twelve months ended December 31, 2016

 

 

LOGO

The Macerich Company

Supplemental Financial and Operating Information

Table of Contents

All information included in this supplemental financial package is unaudited, unless otherwise indicated.

 

     Page No.  

Corporate Overview

      1-4   

Overview

      1-2   

Capital Information and Market Capitalization

      3   

Changes in Total Common and Equivalent Shares/Units

      4   

Financial Data

      5-11   

Consolidated Statements of Operations (Unaudited)

      5   

Consolidated Balance Sheet (Unaudited)

      6   

Non-GAAP Pro Rata Financial Information (Unaudited)

      7-8   

2017 Guidance Range

      9   

Supplemental FFO Information

      10   

Capital Expenditures

      11   

Operational Data

      12-26   

Sales Per Square Foot

      12   

Sales Per Square Foot by Property Ranking

      13-16   

Occupancy

      17   

Average Base Rent Per Square Foot

      18   

Cost of Occupancy

      19   

Percentage of Net Operating Income by State

      20   

Property Listing

      21-24   

Joint Venture List

      25-26   

Debt Tables

      27-29   

Debt Summary

      27   

Outstanding Debt by Maturity Date

      28-29   

Development Pipeline

      30   

Top Ten Tenants

      31   

Corporate Information

      32   

This Supplemental Financial Information should be read in connection with the Company’s fourth quarter 2016 earnings announcement (included as Exhibit 99.1 of the Company’s Current Report on 8-K, event date February 6, 2017) as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Financial Information.

The Macerich Company

Supplemental Financial and Operating Information

Overview

The Macerich Company (the “Company”) is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”).

As of December 31, 2016, the Operating Partnership owned or had an ownership interest in 50 regional shopping centers and seven community/power shopping centers aggregating approximately 56 million square feet of gross leasable area (“GLA”). These 57 centers (which include any related office space) are referred to hereinafter as the “Centers”, unless the context requires otherwise.

As of December 31, 2016, the Company was under contract to sell Cascade Mall and Northgate Mall and subsequently sold these two centers on January 18, 2017. Consequently, Cascade Mall and Northgate Mall have been excluded from all Non-GAAP operating data in 2016, including Sales per square foot, Occupancy, Average Base Rent per square foot and Cost of Occupancy as well as the Property Listing.

The Company is a self-administered and self-managed real estate investment trust (“REIT”) and conducts all of its operations through the Operating Partnership and the Company’s management companies (collectively, the “Management Companies”).

All references to the Company in this Exhibit include the Company, those entities owned or controlled by the Company and predecessors of the Company, unless the context indicates otherwise.

The Company presents certain measures in this Exhibit on a pro rata basis which represents (i) the measure on a consolidated basis, minus the Company’s partners’ share of the measure from its consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of the measure from its unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that these measures provide useful information to investors regarding its financial condition and/or results of operations because they include the Company’s share of the applicable amount from unconsolidated joint ventures and exclude the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and the Company believes that presenting various measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its economic interest in these joint ventures. Management also uses these measures to evaluate regional property level performance and to make decisions about resource allocations. The Company’s economic interest (as distinct from its legal ownership interest) in certain of its joint ventures could fluctuate from time to time and may not wholly align with its legal ownership interests because of provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses, payments of preferred returns and control over major decisions. Additionally, the Company does not control its unconsolidated joint ventures and the presentation of certain items, such as assets, liabilities, revenues and expenses, from these unconsolidated joint ventures does not represent the Company’s legal claim to such items.

This document contains information constituting forward-looking statements and includes expectations regarding the Company’s future operational results as well as development, redevelopment and expansion activities. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective

 

1

tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates, terms and payments, interest rate fluctuations, availability, terms and cost of financing, operating expenses, and competition; adverse changes in the real estate markets, including the liquidity of real estate investments; and risks of real estate development, redevelopment, and expansion, including availability, terms and cost of financing, construction delays, environmental and safety requirements, budget overruns, sunk costs and lease-up; the inability to obtain, or delays in obtaining, all necessary zoning, land-use, building, and occupancy and other required governmental permits and authorizations; and governmental actions and initiatives (including legislative and regulatory changes) as well as terrorist activities or other acts of violence which could adversely affect all of the above factors. Furthermore, occupancy rates and rents at a newly completed property may not be sufficient to make the property profitable. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2015, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events unless required by law to do so.

 

2

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Information and Market Capitalization

 

     Period Ended  
     12/31/2016     12/31/2015     12/31/2014  
     dollars in thousands, except per share data  

Closing common stock price per share

    $ 70.84      $ 80.69      $ 83.41   

52 week high

    $ 94.51      $ 95.93      $ 85.55   

52 week low

    $ 66.00      $ 71.98      $ 55.21   

Shares outstanding at end of period

       

Class A non-participating convertible preferred units

      90,619        138,759        145,839   

Common shares and partnership units

      154,567,331        165,260,655        168,721,053   
  

 

 

    

 

 

    

 

 

  

Total common and equivalent shares/units outstanding

      154,657,950        165,399,414        168,866,892   
  

 

 

    

 

 

    

 

 

  

Portfolio capitalization data

       

Total portfolio debt, including joint ventures at pro rata

    $ 7,548,481      $ 7,010,306      $ 7,050,437   

Equity market capitalization

      10,955,969        13,346,079        14,085,187   
  

 

 

    

 

 

    

 

 

  

Total market capitalization

    $ 18,504,450      $ 20,356,385      $ 21,135,624   
  

 

 

    

 

 

    

 

 

  

Leverage ratio(a)

      40.8 %      34.4 %      33.4 % 

 

(a) Debt as a percentage of total market capitalization.

Portfolio Capitalization at December 31, 2016

 

 

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3

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Changes in Total Common and Equivalent Shares/Units

 

     Partnership
Units		     Company
Common
Shares		     Class A
Non-Participating
Convertible
Preferred Units		     Total
Common
and
Equivalent
Shares/
Units		  

Balance as of December 31, 2015

      10,855,669        154,404,986        138,759        165,399,414   
  

 

 

    

 

 

    

 

 

    

 

 

  

Conversion of partnership units to cash

      (377 )      —          —          (377 ) 

Conversion of partnership units to common shares

      (157,529 )      157,529        —          —     

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

      154,686        86,202        —          240,888   

Repurchase of common shares under the Accelerated Stock Purchase Plan

      —          (5,192,802 )      —          (5,192,802 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of March 31, 2016

      10,852,449        149,455,915        138,759        160,447,123   
  

 

 

    

 

 

    

 

 

    

 

 

  

Conversion of partnership units to common shares

      (20,614 )      20,614        —          —     

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

      —          27,601        —          27,601   

Repurchase of common shares under the Accelerated Stock Purchase Plan

      —          (4,826,047 )      —          (4,826,047 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of June 30, 2016

      10,831,835        144,678,083        138,759        155,648,677   
  

 

 

    

 

 

    

 

 

    

 

 

  

Conversion of partnership units to common shares

      (243,963 )      243,963        —          —     

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

      —          35,753        —          35,753   

Repurchase of common shares under the Accelerated Stock Purchase Plan

      —          (1,104,162 )      —          (1,104,162 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of September 30, 2016

      10,587,872        143,853,637        138,759        154,580,268   
  

 

 

    

 

 

    

 

 

    

 

 

  

Conversion of partnership units to common shares

      (65,000 )      113,140        (48,140 )      —     

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

      59,423        18,259        —          77,682   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2016

      10,582,295        143,985,036        90,619        154,657,950   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

4

The Macerich Company

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands)

 

     For the Three
Months Ended
December 31,
2016		     For the Twelve
Months Ended
December 31,
2016		  

Revenues:

     

Minimum rents

    $ 158,781      $ 616,295   

Percentage rents

      11,623        20,902   

Tenant recoveries

      74,714        305,282   

Other income

      16,343        59,328   

Management Companies’ revenues

      10,539        39,464   
  

 

 

    

 

 

  

Total revenues

      272,000        1,041,271   
  

 

 

    

 

 

  

Expenses:

     

Shopping center and operating expenses

      78,079        307,623   

Management Companies’ operating expenses

      22,839        98,323   

REIT general and administrative expenses

      4,977        28,217   

Depreciation and amortization

      89,391        348,488   

Interest expense

      42,721        163,675   

Gain on extinguishment of debt, net

      —          (1,709 ) 
  

 

 

    

 

 

  

Total expenses

      238,007        944,617   

Equity in income of unconsolidated joint ventures

      19,404        56,941   

Co-venture expense

      (3,875 )      (13,382 ) 

Income tax benefit (expense)

      2,014        (722 ) 

(Loss) gain on sale or write down of assets, net

      (10,702 )      415,348   
  

 

 

    

 

 

  

Net income

      40,834        554,839   

Less net income attributable to noncontrolling interests

      3,706        37,844   
  

 

 

    

 

 

  

Net income attributable to the Company

    $ 37,128      $ 516,995   
  

 

 

    

 

 

  

 

5

The Macerich Company

Consolidated Balance Sheet (Unaudited)

(Dollars in thousands)

 

     As of
December 31, 2016		  

ASSETS:

   

Property, net(1)

    $ 7,357,310   

Cash and cash equivalents

      94,046   

Restricted cash

      49,951   

Tenant and other receivables, net

      136,998   

Deferred charges and other assets, net

      478,058   

Due from affiliates

      68,227   

Investments in unconsolidated joint ventures

      1,773,558   
  

 

 

  

Total assets

    $ 9,958,148   
  

 

 

  

LIABILITIES AND EQUITY:

   

Mortgage notes payable

    $ 4,085,418   

Bank and other notes payable

      880,482   

Accounts payable and accrued expenses

      61,316   

Other accrued liabilities

      366,165   

Distributions in excess of investments in unconsolidated joint ventures

      78,626   

Co-venture obligation

      58,973   
  

 

 

  

Total liabilities

      5,530,980   
  

 

 

  

Commitments and contingencies

   

Equity:

   

Stockholders’ equity:

   

Common stock

      1,440   

Additional paid-in capital

      4,593,229   

Accumulated deficit

      (488,782 ) 
  

 

 

  

Total stockholders’ equity

      4,105,887   

Noncontrolling interests

      321,281   
  

 

 

  

Total equity

      4,427,168   
  

 

 

  

Total liabilities and equity

    $ 9,958,148   
  

 

 

  

 

(1) Includes construction in progress of $289,966.

 

6

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)

 

     For the Three Months
Ended December 31, 2016		     For the Twelve Months
Ended December 31, 2016		  
     Noncontrolling
Interests of
Consolidated
Joint
Ventures(1) 		    Company’s Share
of Unconsolidated
Joint Ventures		     Noncontrolling
Interests of
Consolidated
Joint
Ventures(1)		     Company’s Share
of Unconsolidated
Joint Ventures		  

Revenues:

         

Minimum rents

    $ (8,675 )    $ 82,055      $ (33,595 )    $ 312,159   

Percentage rents

      (493 )      5,423        (749 )      10,954   

Tenant recoveries

      (4,628 )      31,549        (18,708 )      122,376   

Other income

      (687 )      8,704        (2,225 )      28,773   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

      (14,483 )      127,731        (55,277 )      474,262   
  

 

 

    

 

 

    

 

 

    

 

 

  

Expenses:

         

Shopping center and operating expenses

      (4,020 )      36,783        (15,843 )      140,286   

Depreciation and amortization

      (3,839 )      46,281        (15,023 )      179,600   

Interest expense

      (2,300 )      25,247        (9,303 )      97,246   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses

      (10,159 )      108,311        (40,169 )      417,132   

Equity in income of unconsolidated joint ventures

      —          (19,404 )      —          (56,941 ) 

Co-venture expense

      3,875        —          13,382        —     

Gain/loss on sale or write down of assets, net

      (544 )      (16 )      1,662        (189 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

      (993 )      —          (64 )      —     

Less net income attributable to noncontrolling interests

      (993 )      —          (64 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to the Company

    $ —        $ —        $ —        $ —     
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Represents the Company’s partners’ share of consolidated joint ventures.

 

7

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)

 

     As of December 31, 2016  
     Noncontrolling
Interests of
Consolidated
Joint
Ventures(1)		     Company’s Share
of Unconsolidated
Joint Ventures		  

ASSETS:

     

Property, net(2)

    $ (312,775 )    $ 4,403,055   

Cash and cash equivalents

      (6,338 )      82,738   

Restricted cash

      —          4,056   

Tenant and other receivables, net

      (18,361 )      47,032   

Deferred charges and other assets, net

      (5,188 )      185,826   

Due from affiliates

      318        4,798   

Investments in unconsolidated joint ventures, at equity

      —          (1,773,558 ) 
  

 

 

    

 

 

  

Total assets

    $ (342,344 )    $ 2,953,947   
  

 

 

    

 

 

  

LIABILITIES AND EQUITY:

     

Mortgage notes payable

    $ (229,116 )    $ 2,754,457   

Bank and other notes payable

      (2,760 )      60,000   

Accounts payable and accrued expenses

      (3,172 )      38,045   

Other accrued liabilities

      (28,978 )      180,071   

Distributions in excess of investments in unconsolidated joint ventures

      —          (78,626 ) 

Co-venture obligation

      (58,973 )      —     
  

 

 

    

 

 

  

Total liabilities

      (322,999 )      2,953,947   
  

 

 

    

 

 

  

Equity:

     

Stockholders’ equity

      —          —     

Noncontrolling interests

      (19,345 )      —     
  

 

 

    

 

 

  

Total equity

      (19,345 )      —     
  

 

 

    

 

 

  

Total liabilities and equity

    $ (342,344 )    $ 2,953,947   
  

 

 

    

 

 

  

 

(1) Represents the Company’s partners’ share of consolidated joint ventures.
(2) This includes $11,866 of construction in progress relating to the Company’s partners’ share from consolidated joint ventures and $103,840 of construction in progress relating to the Company’s share from unconsolidated joint ventures.

 

8

The Macerich Company

2017 Guidance Range (Unaudited)

 

     Year 2017
Guidance		  

Earnings Expectations:

   

Earnings per share—diluted

      $1.26 - $1.36   

Plus: real estate depreciation and amortization

      $3.05 - $3.05   

Less: gain on sale of depreciated assets

      ($0.41 - $0.41)   
  

 

 

  

FFO per share—diluted

      $3.90 - $4.00   
  

 

 

  

Underlying Assumptions to 2017 Guidance

   

Cash Same Center Net Operating Income (“NOI”) Growth(a)

      3.0% - 4.0%   

Assumed dispositions(b)

      $209 million   

 

            Year 2017
FFO / Share
Impact

Lease termination income

      $15 million       $0.10

Capitalized interest

      $20 million       $0.13

Bad debt expense

      ($5 million)       ($0.03)

Dilutive impact on 2017 of assets sold in 2016 and 2017

      ($12 million)       ($0.08)

Straight-line rent

      $16 million       $0.10

Amortization of acquired above and below-market leases

      $16 million       $0.10

Interest Expense

      ($259 - $263 million)       ($1.67 - 1.70)

 

(a) Excludes non cash items of straight-line and above/below market adjustments to minimum rents. Includes lease termination income.
(b) The Company sold Cascade Mall and Northgate Mall in January 2017 for $170.0 million. Also included are the anticipated proceeds from one additional non-core asset disposition that is under contract and is expected to close in the first quarter of 2017.

 

9

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Supplemental FFO Information(a)

 

     As of December 31,  
     2016      2015  
     dollars in millions  

Straight-line rent receivable

    $ 84.6       $ 80.0   

 

     For the
Three Months Ended
December 31,		      For the
Twelve Months Ended
December 31,		  
     2016      2015      2016      2015  
     dollars in millions  

Lease termination income

    $ 4.0       $ 2.5       $ 21.2       $ 11.3   

Straight-line rental income

    $ 4.3       $ 3.5       $ 13.6       $ 11.3   

Gain on sales of undepreciated assets

    $ 0.8       $ 3.5       $ 3.7       $ 5.7   

Amortization of acquired above and below-market leases

    $ 7.0       $ 3.5       $ 24.7       $ 16.7   

Amortization of debt premiums

    $ 1.0       $ 2.1       $ 4.0       $ 20.0   

Interest capitalized

    $ 4.0       $ 4.5       $ 16.5       $ 20.0   

 

(a) All joint venture amounts included at pro rata.

 

10

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Expenditures

 

     Year Ended
12/31/16		      Year Ended
12/31/15		      Year Ended
12/31/14		  
          
     dollars in millions  

Consolidated Centers

         

Acquisitions of property and equipment

    $ 56.8       $ 79.8       $ 97.9   

Development, redevelopment, expansions and renovations of Centers

      183.2         218.7         197.9   

Tenant allowances

      19.2         30.4         30.5   

Deferred leasing charges

      24.8         26.8         26.6   
  

 

 

     

 

 

     

 

 

  

Total

    $ 284.0       $ 355.7       $ 352.9   
  

 

 

     

 

 

     

 

 

  

Unconsolidated Joint Venture Centers(a)

         

Acquisitions of property and equipment

    $ 349.8       $ 160.0       $ 158.8   

Development, redevelopment, expansions and renovations of Centers

      101.1         132.9         201.8   

Tenant allowances

      11.3         6.3         4.8   

Deferred leasing charges

      7.1         3.3         3.0   
  

 

 

     

 

 

     

 

 

  

Total

    $ 469.3       $ 302.5       $ 368.4   
  

 

 

     

 

 

     

 

 

  

 

(a) All joint venture amounts at pro rata.

 

11

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Regional Shopping Center Portfolio

Sales Per Square Foot(a)

 

     Consolidated
Centers		      Unconsolidated
Joint Venture
Centers		      Total
Centers		  

12/31/2016(b)

    $ 573       $ 710       $ 630   

12/31/2015(c)

    $ 579       $ 763       $ 635   

12/31/2014(d)

    $ 556       $ 724       $ 587   

12/31/2013(e)

    $ 488       $ 717       $ 562   

12/31/2012

    $ 463       $ 629       $ 517   

 

(a) Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under for regional shopping centers. Sales per square foot exclude Centers under development and redevelopment.
(b) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from sales per square foot as of December 31, 2016.
(c) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from sales per square foot as of December 31, 2015.
(d) On June 30, 2015, the Company conveyed Great Northern Mall to the mortgage lender by a deed-in-lieu of foreclosure. Great Northern Mall is excluded from Sales per square foot as of December 31, 2014.
(e) Rotterdam Square, sold January 15, 2014, is excluded at December 31, 2013.

Sales Per Square Foot

 

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12

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

       Sales per square foot       

 

 

Occupancy

        Cost of Occupancy
for the trailing
12 months
Ended 12/31/2016
(c)		        % of Portfolio
2017 Forecast
Pro Rata
Real Estate NOI
(d)		  

Properties

      12/31/2016
(a)		        12/31/2015
(a)		        12/31/2016
(b)		        12/31/2015
(b)		            

Group 1: Top 10

                              

Corte Madera, Village at

      $ 1,456         $ 1,475           90.1 %         97.9 %           

Queens Center

      $ 1,364         $ 1,134           98.5 %         98.2 %           

Washington Square

      $ 972         $ 1,125           99.5 %         98.4 %           

Los Cerritos Center

      $ 896         $ 843           94.9 %         97.2 %           

North Bridge, The Shops at

      $ 884         $ 856           99.3 %         99.8 %           

Tysons Corner Center

      $ 876         $ 851           98.4 %         98.9 %           

Biltmore Fashion Park

      $ 829         $ 835           98.4 %         99.0 %           

Santa Monica Place

      $ 808         $ 786           86.5 %         90.5 %           

Fashion Outlets of Chicago

      $ 772         $ 734           97.7 %         97.9 %           

Broadway Plaza (e)

        n/a           n/a           n/a           n/a             
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total Top 10:

      $ 959         $ 929           96.8 %         97.9 %         13.8 %         31.8 % 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Group 2: Top 11-20

                              

Arrowhead Towne Center

      $ 751         $ 741           94.7 %         95.4 %           

Tucson La Encantada

      $ 747         $ 767           94.6 %         94.8 %           

Scottsdale Fashion Square

      $ 727         $ 745           96.4 %         97.8 %           

Fresno Fashion Fair

      $ 710         $ 642           95.6 %         98.1 %           

Vintage Faire Mall

      $ 704         $ 677           95.4 %         96.7 %           

Kings Plaza Shopping Center

      $ 697         $ 720           95.2 %         92.3 %           

Kierland Commons

      $ 670         $ 670           97.6 %         98.3 %           

Chandler Fashion Center

      $ 657         $ 649           95.2 %         96.9 %           

Danbury Fair Mall

      $ 648         $ 633           95.9 %         97.4 %           

Twenty Ninth Street

      $ 638         $ 626           98.1 %         99.3 %           
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Total Top 11-20:

      $ 695         $ 685           96.0 %         96.9 %         13.1 %         25.1 % 
    

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

13

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

       Sales per square foot       

 

 

Occupancy

      Cost of Occupancy
for the trailing
12 months
Ended 12/31/2016
(c)		      % of Portfolio
2017 Forecast
Pro Rata
Real Estate NOI
(d)		  

Properties

      12/31/2016
(a)		        12/31/2015
(a)		        12/31/2016
(b)		        12/31/2015
(b)		        

Group 3: Top 21-30

                          

Country Club Plaza

        n/a           n/a           n/a           n/a         

Green Acres Mall

      $ 625         $ 643           93.5 %         93.2 %       

Freehold Raceway Mall

      $ 613         $ 610           97.8 %         98.7 %       

Stonewood Center

      $ 576         $ 544           94.0 %         98.5 %       

Deptford Mall

      $ 558         $ 580           95.3 %         95.3 %       

FlatIron Crossing

      $ 550         $ 551           95.1 %         93.7 %       

Victor Valley, Mall of

      $ 539         $ 520           97.8 %         97.9 %       

SanTan Village Regional Center

      $ 522         $ 525           97.5 %         96.5 %       

Oaks, The

      $ 514         $ 580           95.6 %         97.6 %       

Inland Center

      $ 489         $ 510           98.1 %         99.0 %       
    

 

 

       

 

 

       

 

 

       

 

 

     

 

 

     

 

 

  

Total Top 21-30:

      $ 565         $ 568           95.2 %         96.3 %       13.8 %       22.6 % 
    

 

 

       

 

 

       

 

 

       

 

 

     

 

 

     

 

 

  

Group 4: Top 31-40

                          

Lakewood Center

      $ 482         $ 467           98.3 %         96.3 %       

West Acres

      $ 479         $ 501           98.9 %         99.8 %       

La Cumbre Plaza

      $ 469         $ 431           85.2 %         93.1 %       

Valley River Center

      $ 467         $ 465           99.0 %         97.4 %       

Pacific View

      $ 448         $ 448           94.5 %         95.0 %       

South Plains Mall

      $ 425         $ 452           90.1 %         93.5 %       

Superstition Springs Center

      $ 377         $ 369           92.9 %         94.1 %       

Eastland Mall

      $ 367         $ 364           96.3 %         96.8 %       

Fashion Outlets of Niagara Falls USA

      $ 339           n/a           92.9 %         n/a         

Desert Sky Mall

      $ 336         $ 338           97.5 %         97.0 %       
    

 

 

       

 

 

       

 

 

       

 

 

     

 

 

     

 

 

  

Total Top 31-40:

      $ 417         $ 436           95.3 %         96.1 %       13.7 %       13.6 % 
    

 

 

       

 

 

       

 

 

       

 

 

     

 

 

     

 

 

  

Total Top 40:

      $ 652         $ 662           95.8 %         96.8 %       13.6 %       93.1 % 
    

 

 

       

 

 

       

 

 

       

 

 

     

 

 

     

 

 

  

 

14

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

 

     Sales per square foot     

 

 

Occupancy

    

 

Cost of Occupancy
for the trailing
12 months

Ended 12/31/2016
(c)

     % of Portfolio
2017 Forecast
Pro Rata
Real Estate  NOI
(d)		  

Properties

    12/31/2016
(a)		      12/31/2015
(a)		      12/31/2016
(b)		     12/31/2015
(b)		      

Group 5: 41-45

               

NorthPark Mall

               

SouthPark Mall

               

Towne Mall

               

Valley Mall

               

Wilton Mall

               
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

Total 41-45:

    $ 293       $ 314         90.7 %      90.2 %      10.8 %   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

Centers under Redevelopment

               

Fashion Outlets of Philadelphia (e) (f)

               

Paradise Valley Mall (e)

               

Westside Pavilion (e)

               
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

48 REGIONAL SHOPPING CENTERS (g)

    $ 630       $ 643         95.4 %      96.4 %      13.6 %      98.3 % 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Community / Power Centers and various retail assets

                  1.7 % 
            

 

 

    

 

 

  

TOTAL ALL PROPERTIES

                13.4 %      100.0 % 
            

 

 

    

 

 

  

 

15

The Macerich Company

Notes to Sales Per Square Foot by Property Ranking (unaudited)

Footnotes

 

(a) Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under. Properties are ranked by Sales per square foot as of December 31, 2016. Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from sales per square foot as of December 31, 2016.
(b) Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment. Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from occupancy as of December 31, 2016.
(c) Cost of Occupancy represents “Tenant Occupancy Costs” divided by “Tenant Sales”. Tenant Occupancy Costs in this calculation are the amounts paid to the Company, including minimum rents, percentage rents and recoverable expenditures, which consist primarily of property operating expenses, real estate taxes and repair and maintenance expenditures. Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from cost of occupancy as of December 31, 2016.
(d) The percentage of Portfolio 2017 Forecast Pro Rata Real Estate NOI is based on guidance provided on February 6, 2017, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company’s forward-looking statements disclosure on pages 1 and 2 for factors that may affect the information provided in this column.
(e) These assets are under redevelopment including demolition and reconfiguration of the Centers and tenant spaces, accordingly the Sales per square foot and Occupancy during the periods of redevelopment are not included.
(f) On July 30, 2014, the Company formed a joint venture to redevelop and rebrand The Gallery in Philadelphia, Pennsylvania as Fashion Outlets of Philadelphia.
(g) Properties sold or under contract to be sold prior to December 31, 2016 are excluded in both current and prior periods above.

 

16

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Occupancy(a)

 

Regional Shopping Centers:
Period Ended

    Consolidated
Centers		     Unconsolidated
Joint Venture
Centers		     Total
Centers		  

12/31/2016(b)

      94.8 %      96.2 %      95.4 % 

12/31/2015(c)

      95.3 %      97.8 %      96.1 % 

12/31/2014(d)

      95.3 %      97.9 %      95.8 % 

 

(a) Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.
(b) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from occupancy as of December 31, 2016.
(c) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from Occupancy as of December 31, 2015.
(d) On June 30, 2015, the Company conveyed Great Northern Mall to the mortgage lender by a deed-in-lieu of foreclosure. Great Northern Mall is excluded from Occupancy as of December 31, 2014.

 

17

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Average Base Rent Per Square Foot(a)

 

     Average Base Rent
PSF(b)		      Average Base Rent
PSF on Leases
Executed during the
trailing twelve
months ended(c)		      Average Base Rent
PSF on Leases
Expiring(d)		  

Consolidated Centers

         

12/31/2016(e)

    $ 53.51       $ 53.48       $ 44.77   

12/31/2015(f)

    $ 52.64       $ 53.99       $ 49.02   

12/31/2014(g)

    $ 49.68       $ 49.55       $ 41.20   

Unconsolidated Joint Venture Centers

         

12/31/2016

    $ 57.90       $ 64.78       $ 57.29   

12/31/2015

    $ 60.74       $ 80.18       $ 60.85   

12/31/2014

    $ 63.78       $ 82.47       $ 64.59   

All Regional Shopping Centers

         

12/31/2016(e)

    $ 54.87       $ 56.57       $ 48.08   

12/31/2015(f)

    $ 54.32       $ 57.41       $ 50.29   

12/31/2014(g)

    $ 51.15       $ 54.48       $ 44.66   

 

(a) Average base rent per square foot is based on spaces 10,000 square feet and under. All joint venture amounts are included at pro rata. Centers under development and redevelopment are excluded.
(b) Average base rent per square foot gives effect to the terms of each lease in effect, as of the applicable date, including any concessions, abatements and other adjustments or allowances that have been granted to the tenants.
(c) The average base rent per square foot on leases executed during the period represents the actual rent to be paid during the first twelve months.
(d) The average base rent per square foot on leases expiring during the period represents the final year minimum rent on a cash basis.
(e) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from the table above as of December 31, 2016.
(f) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from the table above as of December 31, 2015.
(g) On June 30, 2015, the Company conveyed Great Northern Mall to the mortgage lender by a deed-in-lieu of foreclosure. Great Northern Mall is excluded from the table above as of December 31, 2014.

 

18

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Cost of Occupancy

 

     For Years Ended December 31,  
       2016(a)         2015(b)         2014(c)    

Consolidated Centers

       

Minimum rents

      9.4 %      9.0 %      8.7 % 

Percentage rents

      0.4 %      0.4 %      0.4 % 

Expense recoveries(d)

      4.3 %      4.5 %      4.3 % 
  

 

 

    

 

 

    

 

 

  

Total

      14.1 %      13.9 %      13.4 % 
  

 

 

    

 

 

    

 

 

  
     For Years Ended December 31,  
       2016         2015         2014    

Unconsolidated Joint Venture Centers

       

Minimum rents

      8.6 %      8.1 %      8.7 % 

Percentage rents

      0.3 %      0.4 %      0.4 % 

Expense recoveries(d)

      3.9 %      4.0 %      4.5 % 
  

 

 

    

 

 

    

 

 

  

Total

      12.8 %      12.5 %      13.6 % 
  

 

 

    

 

 

    

 

 

  
     For Years Ended December 31,  
       2016(a)         2015(b)         2014(c)    

All Centers

       

Minimum rents

      9.0 %      8.7 %      8.7 % 

Percentage rents

      0.3 %      0.4 %      0.4 % 

Expense recoveries(d)

      4.1 %      4.3 %      4.3 % 
  

 

 

    

 

 

    

 

 

  

Total

      13.4 %      13.4 %      13.4 % 
  

 

 

    

 

 

    

 

 

  

 

(a) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from cost of occupancy as of December 31, 2016.
(b) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from cost of occupancy as of December 31, 2015.
(c) On June 30, 2015, the Company conveyed Great Northern Mall to the mortgage lender by a deed-in-lieu of foreclosure. Great Northern Mall is excluded from cost of occupancy for the year ended December 31, 2014.
(d) Represents real estate tax and common area maintenance charges.

 

19

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Percentage of Net Operating Income by State

Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from the table below.

 

State

    % of Portfolio
2017 Forecast
Real Estate
Pro Rata NOI(a)		  

California

      27.2 % 

New York

      21.2 % 

Arizona

      16.4 % 

Colorado, Illinois & Missouri

      9.9 % 

Pennsylvania & Virginia

      8.7 % 

New Jersey & Connecticut

      7.6 % 

Oregon

      4.3 % 

Other(b)

      4.7 % 
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

(a) The percentage of Portfolio 2017 Forecast Pro Rata Real Estate NOI is based on guidance provided on February 6, 2017, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company’s forward-looking statements disclosure on pages 1 and 2 for factors that may affect the information provided in this column.
(b) “Other” includes Indiana, Iowa, Kentucky, North Dakota and Texas.

 

20

The Macerich Company

Property Listing

December 31, 2016

The following table sets forth certain information regarding the Centers and other locations that are wholly owned or partly owned by the Company. Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from the table below.

 

Count

   

Company’s

Ownership(a)

   

Name of
Center/Location

    Year of
Original
Construction/
Acquisition		      Year of Most
Recent
Expansion/
Renovation		      Total
GLA(b)		  
   CONSOLIDATED CENTERS:         
1    50.1%   

Chandler Fashion Center
Chandler, Arizona

     2001/2002         —         1,319,000   
2    100%   

Danbury Fair Mall
Danbury, Connecticut

     1986/2005         2010         1,269,000   
3    100%   

Desert Sky Mall
Phoenix, Arizona

     1981/2002         2007         890,000   
4    100%   

Eastland Mall(c)
Evansville, Indiana

     1978/1998         1996         1,044,000   
5    100%   

Fashion Outlets of Chicago
Rosemont, Illinois

     2013/—         —         538,000   
6    100%   

Fashion Outlets of Niagara Falls USA
Niagara Falls, New York

     1982/2011         2014         686,000   
7    50.1%   

Freehold Raceway Mall
Freehold, New Jersey

     1990/2005         2007         1,674,000   
8    100%   

Fresno Fashion Fair
Fresno, California

     1970/1996         2006         963,000   
9    100%   

Green Acres Mall(c)
Valley Stream, New York

     1956/2013         2016         2,089,000   

10

    100%   

Inland Center(c)
San Bernardino, California

     1966/2004         2016         866,000   

11

    100%   

Kings Plaza Shopping Center(c)
Brooklyn, New York

     1971/2012         2002         1,189,000   

12

    100%   

La Cumbre Plaza(c)
Santa Barbara, California

     1967/2004         1989         491,000   

13

    100%   

NorthPark Mall
Davenport, Iowa

     1973/1998         2001         1,035,000   

14

    100%   

Oaks, The
Thousand Oaks, California

     1978/2002         2009         1,191,000   

15

    100%   

Pacific View
Ventura, California

     1965/1996         2001         1,021,000   

16

    100%   

Queens Center(c)
Queens, New York

     1973/1995         2004         963,000   

17

    100%   

Santa Monica Place
Santa Monica, California

     1980/1999         2015         517,000   

18

    84.9%   

SanTan Village Regional Center
Gilbert, Arizona

     2007/—         2009         1,057,000   

19

    100%   

SouthPark Mall
Moline, Illinois

     1974/1998         2014         862,000   

20

    100%   

Stonewood Center(c)
Downey, California

     1953/1997         1991         932,000   

21

    100%   

Superstition Springs Center
Mesa, Arizona

     1990/2002         2002         1,040,000   

22

    100%   

Towne Mall
Elizabethtown, Kentucky

     1985/2005         1989         350,000   

 

21

The Macerich Company

Property Listing

December 31, 2016

 

Count

   

Company’s

Ownership(a)

   

Name of
Center/Location

    Year of
Original
Construction/
Acquisition		      Year of Most
Recent
Expansion/
Renovation		    Total
GLA(b)		  

23

    100%   

Tucson La Encantada
Tucson, Arizona

     2002/2002       2005      243,000   

24

    100%   

Valley Mall
Harrisonburg, Virginia

     1978/1998       1992      505,000   

25

    100%   

Valley River Center
Eugene, Oregon

     1969/2006       2007      921,000   

26

    100%   

Victor Valley, Mall of
Victorville, California

     1986/2004       2012      577,000   

27

    100%   

Vintage Faire Mall
Modesto, California

     1977/1996       2008      1,140,000   

28

    100%   

Wilton Mall
Saratoga Springs, New York

     1990/2005       1998      737,000   
              

 

 

  
      Total Consolidated Centers            26,109,000   
              

 

 

  
UNCONSOLIDATED JOINT VENTURE CENTERS:         

29

    60%   

Arrowhead Towne Center
Glendale, Arizona

     1993/2002       2004      1,197,000   

30

    50%   

Biltmore Fashion Park
Phoenix, Arizona

     1963/2003       2006      517,000   

31

    50.1%   

Corte Madera, Village at
Corte Madera, California

     1985/1998       2005      461,000   

32

    50%   

Country Club Plaza
Kansas City, Missouri

     1922/2016       2015      1,004,000   

33

    51%   

Deptford Mall
Deptford, New Jersey

     1975/2006       1990      1,039,000   

34

    51%   

FlatIron Crossing
Broomfield, Colorado

     2000/2002       2009      1,431,000   

35

    50%   

Kierland Commons
Scottsdale, Arizona

     1999/2005       2003      436,000   

36

    60%   

Lakewood Center
Lakewood, California

     1953/1975       2008      2,064,000   

37

    60%   

Los Cerritos Center(c)
Cerritos, California

     1971/1999       2016      1,298,000   

38

    50%   

North Bridge, The Shops at(c)
Chicago, Illinois

     1998/2008       —      671,000   

39

    50%   

Scottsdale Fashion Square
Scottsdale, Arizona

     1961/2002       2015      1,812,000   

40

    60%   

South Plains Mall
Lubbock, Texas

     1972/1998       2016      1,127,000   

41

    51%   

Twenty Ninth Street(c)
Boulder, Colorado

     1963/1979       2007      847,000   

42

    50%   

Tysons Corner Center
Tysons Corner, Virginia

     1968/2005       2005      1,974,000   

43

    60%   

Washington Square
Portland, Oregon

     1974/1999       2005      1,440,000   

44

    19%   

West Acres
Fargo, North Dakota

     1972/1986       2001      971,000   
              

 

 

  
      Total Unconsolidated Joint Venture Centers            18,289,000   
              

 

 

  

 

22

The Macerich Company

Property Listing

December 31, 2016

 

Count

   

Company’s

Ownership(a)

   

Name of
Center/Location

    Year of
Original
Construction/
Acquisition		      Year of Most
Recent
Expansion/
Renovation		      Total
GLA(b)		  
REGIONAL SHOPPING CENTERS UNDER REDEVELOPMENT:      

45

    50%   

Broadway Plaza(c)(d)
Walnut Creek, California

     1951/1985         2016         923,000   

46

    50%   

Fashion Outlets of Philadelphia(c)(d)
Philadelphia, Pennsylvania

     1977/2014         ongoing         850,000   

47

    100%   

Paradise Valley Mall(e)
Phoenix, Arizona

     1979/2002         2009         1,203,000   

48

    100%   

Westside Pavilion(e)
Los Angeles, California

     1985/1998         2007         755,000   
              

 

 

  
      Total Regional Shopping Centers            48,129,000   
              

 

 

  

COMMUNITY / POWER CENTERS:

  

      

1

    50%   

Atlas Park, The Shops at(d)
Queens, New York

     2006/2011         2013         371,000   

2

    50%   

Boulevard Shops(d)
Chandler, Arizona

     2001/2002         2004         185,000   

3

    various   

Estrella Falls, The Market at(d)
Goodyear, Arizona

     2009/—         2009         355,000   

4

    89.4%   

Promenade at Casa Grande(e)
Casa Grande, Arizona

     2007/—         2009         761,000   

5

    100%   

Southridge Center(e)
Des Moines, Iowa

     1975/1998         2013         823,000   

6

    100%   

Superstition Springs Power Center(e)
Mesa, Arizona

     1990/2002         —         206,000   

7

    100%   

The Marketplace at Flagstaff Mall(c)(e)
Flagstaff, Arizona

     2007/—         —         268,000   
              

 

 

  
      Total Community / Power Centers            2,969,000   
              

 

 

  

OTHER ASSETS:

         
   100%   

Various(e)(f)

            447,000   
   100%   

500 North Michigan Avenue(e)
Chicago, Illinois

           326,000   
   50%   

Valencia Place at Country Club Plaza(d)
Kansas City, Missouri

           242,000   
   50%   

Fashion Outlets of Philadelphia-Offices(c)(d)
Philadelphia, Pennsylvania

           526,000   
   50%   

Scottsdale Fashion Square-Office(d)
Scottsdale, Arizona

           123,000   
   50%   

Tysons Corner Center-Office(d)
Tysons Corner, Virginia

           174,000   
   50%   

Hyatt Regency Tysons Corner Center(d)
Tysons Corner, Virginia

           290,000   
   50%   

VITA Tysons Corner Center(d)
Tysons Corner, Virginia

           510,000   
   50%   

Tysons Tower(d)
Tysons Corner, Virginia

           528,000   
              

 

 

  
      Total Other Assets            3,166,000   
              

 

 

  
      Grand Total at December 31, 2016            54,264,000   
              

 

 

  

 

23

The Macerich Company

Property Listing

December 31, 2016

 

 

(a) The Company’s ownership interest in this table reflects its legal ownership interest. See footnotes (a) and (b) on pages 25 and 26 regarding the legal versus economic ownership of joint venture entities.
(b) Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of December 31, 2016.
(c) Portions of the land on which the Center is situated are subject to one or more long-term ground leases. With respect to 42 Centers, the underlying land controlled by the Company is owned in fee entirely by the Company, or, in the case of jointly-owned Centers, by the joint venture property partnership or limited liability company.
(d) Included in Unconsolidated Joint Venture Centers.
(e) Included in Consolidated Centers.
(f) The Company owns an office building and seven stores located at shopping centers not owned by the Company. Of the seven stores, two are leased to Forever 21, one is leased to Kohl’s, one is vacant, and three have been leased for non-Anchor uses. With respect to the office building and four of the seven stores, the underlying land is owned in fee entirely by the Company. With respect to the remaining three stores, the underlying land is owned by third parties and leased to the Company pursuant to long-term building or ground leases.

 

24

The Macerich Company

Joint Venture List

The following table sets forth certain information regarding the Centers and other operating properties that are not wholly-owned by the Company. This list of properties includes unconsolidated joint ventures, consolidated joint ventures, and co-venture arrangements. The percentages shown are the effective legal ownership and economic ownership interests of the Company as of December 31, 2016.

 

Properties

    12/31/2016
Legal
Ownership(a)		     12/31/2016
Economic
Ownership(b)		    

Joint Venture

    12/31/2016
Total GLA(c)		  

Arrowhead Towne Center

      60 %      60 %    New River Associates LLC      1,197,000   

Atlas Park, The Shops at

      50 %      50 %    WMAP, L.L.C.      371,000   

Biltmore Fashion Park

      50 %      50 %    Biltmore Shopping Center Partners LLC      517,000   

Boulevard Shops

      50 %      50 %    Propcor II Associates, LLC      185,000   

Broadway Plaza

      50 %      50 %    Macerich Northwestern Associates      923,000   

Chandler Fashion Center(d)

      50.1 %      50.1 %    Freehold Chandler Holdings LP      1,319,000   

Corte Madera, Village at

      50.1 %      50.1 %    Corte Madera Village, LLC      461,000   

Country Club Plaza

      50 %      50 %    Country Club Plaza KC Partners LLC      1,004,000   

Deptford Mall

      51 %      51 %    Macerich HHF Centers LLC      1,039,000   

Estrella Falls

      86.6 %      86.6 %    Westcor Goodyear RSC LLC      79,000   

Estrella Falls, The Market at(e)

      40.1 %      40.1 %    The Market at Estrella Falls LLC      276,000   

Fashion Outlets of Philadelphia

      50 %      50 %    Various Entities      850,000   

Fashion Outlets of Philadelphia-Offices

      50 %      50 %    Various Entities      526,000   

FlatIron Crossing

      51 %      51 %    Macerich HHF Centers LLC      1,431,000   

Freehold Raceway Mall(d)

      50.1 %      50.1 %    Freehold Chandler Holdings LP      1,674,000   

Hyatt Regency Tysons Corner Center

      50 %      50 %    Tysons Corner Hotel I LLC      290,000   

Kierland Commons

      50 %      50 %    Kierland Commons Investment LLC      436,000   

Lakewood Center

      60 %      60 %    Pacific Premier Retail LLC      2,064,000   

Los Cerritos Center

      60 %      60 %    Pacific Premier Retail LLC      1,298,000   

North Bridge, The Shops at

      50 %      50 %    North Bridge Chicago LLC      671,000   

Promenade at Casa Grande(f)

      89.4 %      89.4 %    WP Casa Grande Retail LLC      761,000   

SanTan Village Regional Center

      84.9 %      84.9 %    Westcor SanTan Village LLC      1,057,000   

Scottsdale Fashion Square

      50 %      50 %    Scottsdale Fashion Square Partnership      1,812,000   

Scottsdale Fashion Square-Office

      50 %      50 %    Scottsdale Fashion Square Partnership      123,000   

Macerich Seritage Portfolio(g)

      50 %      50 %    MS Portfolio LLC      1,550,000   

South Plains Mall

      60 %      60 %    Pacific Premier Retail LLC      1,127,000   

Twenty Ninth Street

      51 %      51 %    Macerich HHF Centers LLC      847,000   

Tysons Corner Center

      50 %      50 %    Tysons Corner LLC      1,974,000   

Tysons Corner Center-Office

      50 %      50 %    Tysons Corner Property LLC      174,000   

Tysons Tower

      50 %      50 %    Tysons Corner Property LLC      528,000   

Valencia Place at Country Club Plaza

      50 %      50 %    TM TRS Holding Company LLC      242,000   

VITA Tysons Corner Center

      50 %      50 %    Tysons Corner Property LLC      510,000   

Washington Square

      60 %      60 %    Pacific Premier Retail LLC      1,440,000   

West Acres

      19 %      19 %    West Acres Development, LLP      971,000   

 

(a) This column reflects the Company’s legal ownership in the listed properties as of December 31, 2016. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests. Substantially all of the Company’s joint venture agreements contain rights of first refusal, buy-sell provisions, exit rights, default dilution remedies and/or other break up provisions or remedies which are customary in real estate joint venture agreements and which may, positively or negatively, affect the ultimate realization of cash flow and/or capital or liquidation proceeds.

 

25

The Macerich Company

Joint Venture List

 

(b) Economic ownership represents the allocation of cash flow to the Company as of December 31, 2016, except as noted below. In cases where the Company receives a current cash distribution greater than its legal ownership percentage due to a capital account greater than its legal ownership percentage, only the legal ownership percentage is shown in this column. The Company’s economic ownership of these properties may fluctuate based on a number of factors, including mortgage refinancings, partnership capital contributions and distributions, and proceeds and gains or losses from asset sales, and the matters set forth in the preceding paragraph.
(c) Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of December 31, 2016.
(d) The joint venture entity was formed in September 2009. Upon liquidation of the partnership, distributions are made in the following order: to the third-party partner until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; to the Company until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; and, thereafter, pro rata 35% to the third-party partner and 65% to the Company.
(e) Columns 1 and 2 reflect the Company’s indirect ownership interest in the property owner. The Company and a third-party partner are each members of a joint venture (the “MW Joint Venture”) which, in turn, is a member in the joint venture that owns the property. Cash flow distributions for the MW Joint Venture are made in accordance with the members’ relative capital accounts until the members have received distributions equal to their capital accounts, and thereafter in accordance with the members’ relative legal ownership percentages.
(f) Columns 1 and 2 reflect the Company’s total direct and indirect ownership interest in the property owner. The Company and a third-party partner are each members of a joint venture (the “MW Joint Venture”) which, in turn, is a member in the joint venture with the Company that owns the property. Cash flow distributions for the MW Joint Venture are made in accordance with the members’ relative capital accounts until the members have received distributions equal to their capital accounts, and thereafter in accordance with the members’ relative legal ownership percentages.
(g) On April 30, 2015 Sears Holdings Corporation (“Sears”) and the Company announced that they had formed a joint venture, MS Portfolio LLC. Sears contributed nine stores (located at Arrowhead Towne Center, Chandler Fashion Center, Danbury Fair Mall, Deptford Mall, Freehold Raceway Mall, Los Cerritos Center, South Plains Mall, Vintage Faire Mall and Washington Square) to the joint venture and the Company contributed $150 million in cash to the joint venture. The lease arrangements between Sears and the joint venture provide the ability to create additional value through recapturing certain space leased to Sears in these properties and re-leasing that space to third-party tenants. For example, Primark has leased space in portions of the Sears stores at Danbury Fair Mall and Freehold Raceway Mall. On July 7, 2015, Sears assigned its ownership interest in MS Portfolio LLC to Seritage MS Holdings LLC.

 

26

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Debt Summary (at Company’s pro rata share)(1)

 

     As of December 31, 2016  
     Fixed Rate     Floating Rate     Total  
     (Dollars in thousands)  

Mortgage notes payable

    $ 3,823,018      $ 262,400      $ 4,085,418   

Bank and other notes payable

      5,521        874,961        880,482   
  

 

 

    

 

 

    

 

 

  

Total debt per Consolidated Balance Sheet

      3,828,539        1,137,361        4,965,900   

Adjustments:

       

Less: Noncontrolling interests share of debt from consolidated joint ventures

      (231,876 )      —          (231,876 ) 
  

 

 

    

 

 

    

 

 

  

Adjusted Consolidated Debt

      3,596,663        1,137,361        4,734,024   

Add: Company’s share of debt from unconsolidated joint ventures

      2,645,637        168,820        2,814,457   
  

 

 

    

 

 

    

 

 

  

Total Company’s Pro Rata Share of Debt

    $ 6,242,300      $ 1,306,181      $ 7,548,481   
  

 

 

    

 

 

    

 

 

  

Weighted average interest rate

      3.79 %      2.46 %      3.56 % 

Weighted average maturity (years)

          6.3   

 

(1) The Company’s pro rata share of debt represents (i) consolidated debt, minus the Company’s partners’ share of the amount from consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of debt from unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that this measure provides useful information to investors regarding the Company’s financial condition because it includes the Company’s share of debt from unconsolidated joint ventures and, for consolidated debt, excludes the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and presenting its pro rata share of debt in this manner can help investors better understand the Company’s financial condition after taking into account the Company’s economic interest in these joint ventures. The Company’s pro rata share of debt should not be considered as a substitute to the Company’s total debt determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

 

27

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date

 

     As of December 31, 2016  

Center/Entity (dollars in thousands)

    Maturity Date      Effective
Interest
Rate (a)		     Fixed      Floating      Total Debt
Balance (a)		  

I. Consolidated Assets:

              

Stonewood Center

      11/01/17         1.80 %    $ 99,520       $ —         $ 99,520   

Freehold Raceway Mall(b)

      01/01/18         4.20 %      110,542         —           110,542   

Santa Monica Place

      01/03/18         2.99 %      219,564         —           219,564   

SanTan Village Regional Center(c)

      06/01/19         3.14 %      108,425         —           108,425   

Chandler Fashion Center(b)

      07/01/19         3.77 %      100,117         —           100,117   

Kings Plaza Shopping Center

      12/03/19         3.67 %      456,958         —           456,958   

Danbury Fair Mall

      10/01/20         5.53 %      215,857         —           215,857   

Fashion Outlets of Niagara Falls USA

      10/06/20         4.89 %      115,762         —           115,762   

Green Acres Mall

      02/03/21         3.61 %      297,798         —           297,798   

Prasada(d)

      05/30/21         5.25 %      2,761         —           2,761   

Tucson La Encantada

      03/01/22         4.23 %      68,513         —           68,513   

Pacific View

      04/01/22         4.08 %      127,311         —           127,311   

Oaks, The

      06/05/22         4.14 %      201,235         —           201,235   

Westside Pavilion

      10/01/22         4.49 %      143,881         —           143,881   

Towne Mall

      11/01/22         4.48 %      21,570         —           21,570   

Victor Valley, Mall of

      09/01/24         4.00 %      114,559         —           114,559   

Queens Center

      01/01/25         3.49 %      600,000         —           600,000   

Vintage Faire

      03/06/26         3.55 %      269,228         —           269,228   

Fresno Fashion Fair

      11/01/26         3.67 %      323,062         —           1323,062   
     

 

 

    

 

 

     

 

 

     

 

 

  

Total Fixed Rate Debt for Consolidated Assets

         3.79 %    $ 3,596,663       $ —         $ 3,596,663   
     

 

 

    

 

 

     

 

 

     

 

 

  

Northgate Mall(e)

      03/01/17         3.50 %    $ —         $ 63,434       $ 63,434   

Fashion Outlets of Chicago

      03/31/20         2.43 %      —           198,966         198,966   

The Macerich Partnership, L.P. - Line of Credit(f)

      07/06/21         2.40 %      —           874,961         874,961   
     

 

 

    

 

 

     

 

 

     

 

 

  

Total Floating Rate Debt for Consolidated Assets

         2.47 %    $ —         $ 1,137,361       $ 1,137,361   
     

 

 

    

 

 

     

 

 

     

 

 

  

Total Debt for Consolidated Assets

         3.47 %    $ 3,596,663       $ 1,137,361       $ 4,734,024   
     

 

 

    

 

 

     

 

 

     

 

 

  

 

28

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date

 

     As of December 31, 2016  

Center/Entity (dollars in thousands)

    Maturity Date      Effective
Interest
Rate (a)		     Fixed     Floating     Total Debt
Balance (a)		  

II. Unconsolidated Assets (At Company’s pro rata share):

            

West Acres (19%)(g)

      02/01/17         6.41 %    $ 10,213      $ —        $ 10,213   

FlatIron Crossing (51%)

      01/05/21         2.81 %      131,361        —          131,361   

Washington Square Mall (60%)

      11/01/22         3.65 %      330,000        —          330,000   

Deptford Mall (51%)

      04/03/23         3.55 %      97,762        —          97,762   

Scottsdale Fashion Square (50%)

      04/03/23         3.02 %      241,581        —          241,581   

Tysons Corner Center (50%)

      01/01/24         4.13 %      398,795        —          398,795   

South Plains Mall (60%)

      11/06/25         4.22 %      120,000        —          120,000   

Twenty Ninth Street (51%)

      02/06/26         4.10 %      76,500        —          76,500   

Country Club Plaza (50%)

      04/01/26         3.88 %      159,561        —          159,561   

Lakewood Center (60%)

      06/01/26         4.15 %      225,655        —          225,655   

Los Cerritos Center (60%)

      11/01/27         4.00 %      315,000        —          315,000   

Arrowhead Towne Center (60%)

      02/01/28         4.05 %      240,000        —          240,000   

North Bridge, The Shops at (50%)

      06/01/28         3.71 %      186,882        —          186,882   

Corte Madera, The Village at (50.1%)

      09/01/28         3.53 %      112,327        —          112,327   
     

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Rate Debt for Unconsolidated Assets

         3.80 %    $ 2,645,637      $ —        $ 2,645,637   
     

 

 

    

 

 

    

 

 

    

 

 

  

Kierland Commons (50%)(h)

      01/02/18         2.78 %    $ —        $ 65,273      $ 65,273   

Boulevard Shops (50%)(f)

      12/16/18         2.50 %      —          9,557        9,557   

Estrella Falls, The Market at (40.1%)(f)

      02/05/20         2.60 %      —          10,325        10,325   

Atlas Park (50%)(f)

      10/28/20         2.98 %      —          23,665        23,665   

Pacific Premier Retail LLC (60%)

      10/31/22         1.82 %      —          60,000        60,000   
     

 

 

    

 

 

    

 

 

    

 

 

  

Total Floating Rate Debt for Unconsolidated Assets

         2.44 %    $ —        $ 168,820      $ 168,820   
     

 

 

    

 

 

    

 

 

    

 

 

  

Total Debt for Unconsolidated Assets

         3.72 %    $ 2,645,637      $ 168,820      $ 2,814,457   
     

 

 

    

 

 

    

 

 

    

 

 

  

Total Debt

         3.56 %    $ 6,242,300      $ 1,306,181      $ 7,548,481   
     

 

 

    

 

 

    

 

 

    

 

 

  

Percentage to Total

           82.70 %      17.30 %      100.00 % 

 

(a) The debt balances include the unamortized debt premiums/discounts and loan finance costs. Debt premiums/discounts represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions. Debt premiums/discounts and loan finance costs are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The annual interest rate in the table represents the effective interest rate, including the debt premiums/discounts and loan finance costs.
(b) This property is owned by a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 50.1%.
(c) This property is owned by a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 84.9%.
(d) This property is owned by a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 50.0%.
(e) On January 18, 2017, the loan was paid off in connection with the sale of the property.
(f) The maturity date assumes that all available extension options are fully exercised and that the Company and/or its affiliates do not opt to refinance the debt prior to these dates.
(g) On February 1, 2017, the Company’s joint venture closed on a $80 million refinance loan bearing a fixed interest rate of 4.61% and maturing on February 1, 2032.
(h) The Company’s joint venture entered into a loan commitment for a $225 million refinance loan bearing a fixed interest rate of 3.95% for ten years. This transaction is expected to close within the first quarter of 2017.

 

29

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Development Pipeline Forecast

(Dollars in millions)

as of December 31, 2016

In-Process Developments and Redevelopments:

 

Property

   

Project Type

  

Total Cost(a)(b)
at 100%

  

Ownership
%

  

Total Cost(a)(b)
Pro Rata

  

Pro Rata

Capitalized Costs(b)

12/31/2016

  

Expected
Delivery(a)

   Stabilized
Yield(a)(b)(c)		  

Fashion Outlets of Philadelphia
Philadelphia, PA

    Redevelopment of The Gallery in downtown Philadelphia   $305 - $365(d)   50%   $153 - $183(d)   $47   2018     8%(d)   

Kings Plaza Shopping Center
Brooklyn, NY

    250,000 sf redevelopment of existing Sears store, anchored by Primark   $95 - $100   100%   $95 - $100   $10   2018     4%(e)   
    

 

    

 

  

 

    

Total In-Process

      $400 - $465     $248 - $283   $57    
    

 

    

 

  

 

    

Shadow Pipeline of Developments and Redevelopments(f):

 

Property

   

Project Type

    Total Cost(a)(b)
at 100%		      Ownership
%		     Total Cost(a)(b)
Pro Rata		      Pro Rata
Capitalized Costs(b)
12/31/2016		      Expected
Delivery(a)		     

Stabilized

Yield(a)(b)(c)

Fashion Outlets of San Francisco
San Francisco, CA

    A 500,000 sf outlet center on the historic site of Candlestick Park    $ 350         50.1 %    $ 175       $ 3         2018 - 2019       7% - 9%

Paradise Valley Mall
Phoenix, AZ

    Redevelopment (size TBD) including a theater      TBD         100 %      TBD       $ 1         TBD       TBD  

Westside Pavilion
Los Angeles, CA

    Redevelopment of an existing 755,000 sf Center      TBD         100 %      TBD       $ 2         TBD       TBD  
     

 

 

       

 

 

     

 

 

        

Total Shadow Pipeline

       $ 350         $ 175       $ 6         
     

 

 

       

 

 

     

 

 

        

 

(a) Much of this information is estimated and may change from time to time. See the Company’s forward-looking disclosure on pages 1 and 2 for factors that may affect the information provided in this table.
(b) This excludes GAAP allocations of non cash and indirect costs.
(c) Stabilized Yield is calculated based on stabilized income after development divided by project direct costs excluding GAAP allocations of non cash and indirect costs.
(d) This reflects incremental project costs and income subsequent to the Company’s $106.8 million investment in July 2014. Total Costs are net of $25 million of approved public financing grants that will be a reduction of costs.
(e) The Sears lease has been terminated. The 4% yield represents an incremental return over Sears former annual rent. The yield would increase to 8% without including any offsetting rent impact from Sears.
(f) This section includes potential developments or redevelopments that the Company is considering. The scope of these projects may change. Average returns are expected to be 7% to 9%. There is no certainty that the Company will develop or redevelop any or all of these potential projects.

 

30

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Top Ten Tenants

The following retailers (including their subsidiaries) represent the 10 largest rent payers in the Centers based upon total rents in place as of December 31, 2016. Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from the table below.

 

Tenant

  

Primary DBAs

   Number of
Locations
in the
Portfolio		     % of Total
Rents		  

L Brands, Inc.

   Victoria’s Secret, Bath and Body Works, PINK     94        2.7 % 

Forever 21, Inc.

   Forever 21, XXI Forever, Love21     34        2.5 % 

Foot Locker, Inc.

   Champs Sports, Foot Locker, Kids Foot Locker, Lady Foot Locker, Foot Action, House of Hoops SIX:02 and others     93        1.9 % 

Gap, Inc., The

   Athleta, Banana Republic, Gap, Gap Kids, Old Navy and others     57        1.9 % 

Signet Jewelers

   Gordon’s Jewelers, Jared Jewelry, Kay Jewelers, Piercing Pagoda, Rogers Jewelers, Shaw’s Jewelers, Weisfield Jewelers, Zales     102        1.6 % 

Dick’s Sporting Goods, Inc.

   Dick’s Sporting Goods, Chelsea Collective     15        1.5 % 

H & M Hennes & Mauritz AB

   H & M     24        1.5 % 

Golden Gate Capital

   Payless ShoeSource, Eddie Bauer, California Pizza Kitchen, PacSun     78        1.2 % 

American Eagle Outfitters, Inc.

   American Eagle Outfitters, aerie     36        1.1 % 

Sears Holdings Corporation

   Sears     22        1.0 % 

 

31

The Macerich Company

Corporate Information

Stock Exchange Listing

New York Stock Exchange

Symbol: MAC

The following table shows high and low sales prices per share of common stock during each quarter in 2016, 2015 and 2014 and dividends per share of common stock declared and paid by quarter:

 

     Market Quotation
per Share		      Dividends  

Quarter Ended:

    High      Low      Declared
and Paid		  

March 31, 2014

    $ 62.41       $ 55.21       $ 0.62   

June 30, 2014

    $ 68.28       $ 61.66       $ 0.62   

September 30, 2014

    $ 68.81       $ 62.62       $ 0.62   

December 31, 2014

    $ 85.55       $ 63.25       $ 0.65   

March 31, 2015

    $ 95.93       $ 81.61       $ 0.65   

June 30, 2015

    $ 86.31       $ 74.51       $ 0.65   

September 30, 2015

    $ 81.52       $ 71.98       $ 0.65   

December 31, 2015

    $ 86.29       $ 74.55       $ 2.68 (a) 

March 31, 2016

    $ 82.88       $ 72.99       $ 2.68 (a) 

June 30, 2016

    $ 85.39       $ 71.82       $ 0.68   

September 30, 2016

    $ 94.51       $ 78.76       $ 0.68   

December 31, 2016

    $ 80.54       $ 66.00       $ 0.71   

 

(a) Includes a special dividend of $2.00 per common share paid on December 8, 2015. Separately, the Company also paid a special dividend of $2.00 per common share on January 6, 2016.

Dividend Reinvestment Plan

Stockholders may automatically reinvest their dividends in additional common stock of the Company through the Direct Investment Program, which also provides for purchase by voluntary cash contributions. For additional information, please contact Computershare Trust Company, N.A. at 800-567-0169.

 

Corporate Headquarters
The Macerich Company
401 Wilshire Boulevard, Suite 700
Santa Monica, California 90401
310-394-6000
www.macerich.com		    Transfer Agent
Computershare
P.O. Box 30170
College Station, TX 77842-3170
800-567-0169
www.computershare.com

Macerich Website

For an electronic version of our annual report, our SEC filings and documents relating to Corporate Governance, please visit www.macerich.com.

Investor Relations

 

Jean Wood
Vice President, Investor Relations
Phone: 424-229-3366
jean.wood@macerich.com		    John Perry
Senior Vice President, Investor Relations
Phone: 424-229-3345
john.perry@macerich.com

 

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